N.J. gas dealers sue Exxon claiming price manipulation

Danny Teigman/The Star-LedgerRoseland attorney Marc Gross and members of United Dealers New Jersey announce the filing of their lawsuit against Texas-based ExxonMobil at an Exxon station in Fort LeeSome 88 ExxonMobile gas station owners have filed a complaint in federal court in Newark claiming that the oil company is purposely undermining the ability of store owners to earn profit while charging gas stations different fees for the same amount of fuel at nearby locations.

The owners claim the policies — in addition to saddling customers with higher pump prices — undermine a legislative victory they earned last summer giving them the right to buy their stations before they are sold to third-party distributors.

“We’re bringing a lawsuit against the largest oil company in the world (to) make the public aware that we’re fighting for the same cause as you are,” said Roger Verma, a 15-year Exxon franchise owner who runs three stations in Somerset, Montclair and Newark. “We’re not fighting just to buy our properties.”

The 12-count complaint alleges ExxonMobil manipulates the timing of the delivery of fuel to ensure the highest prices, continues to raise store rents despite a lackluster real estate market and charges gas stations different fuel prices in an arbitrary and discriminatory manner.

At one point Exxon divided New Jersey into two pricing zones, north and south. Today New Jersey is carved into approximately 100 zones where some have only a single gas station, according to the suit.

“Pricing among the zones has become inexplicably disparate and does not appear to bear relationship to meeting competition,” the suit said.

ExxonMobil would not comment on the specifics of the lawsuit, calling any response “premature,” but said that pump prices are set by Exxon dealers, not the company at-large.

“The lawsuit has just been filed, we got to be served,” said Kevin Allexon, a company spokesman. “I think the court’s got to soak on it a little. Our plan is to defend ourselves vigorously.”

Marc Gross, of the Roseland law firm Greenbaum Rowe Smith & Davis, however, called Wednesday’s filing an attempt “to bring sanity to the oil fuel marketplace.”“We’re trying to reform the way Exxon does business,” he said.

While Exxon offered no timetable for a legal response, Gross said he expects it will take the Texas-based company up to two months to respond.

Danny Teigman may be reached at dteigman@starledger.com or (973) 392-5905.